Functional Tax Governance Apparatus and Economic Development

www.ijemr.net ISSN (ONLINE): 2250-0758, ISSN (PRINT): 2394-6962
209 Copyright © 2018. IJEMR. All Rights Reserved.
Volume-8, Issue-5, October 2018
International Journal of Engineering and Management Research
Page Number: 209-216
DOI: doi.org/10.31033/ijemr.8.5.09
Functional Tax Governance Apparatus and Economic Development
ADEUSI Amos Sunday1
and Dr. OLADELE, Rotimi2
1
Faculty of Social and Management Sciences, Department of Accounting, Adekunle Ajasin University, Akungba Akoko,
Ondo State, NIGERIA
2
Faculty of Social and Management Sciences, Department of Accounting, Adekunle Ajasin University, Akungba Akoko,
Ondo State, NIGERIA
1
Corresponding Author: amos.adeusi@aaua.edu.ng
ABSTRACT
The proportion of tax earnings to gross domestic
product (GDP) in Nigerian economy had been ranked and
affirmed the least in the sub-Sahara African and as
evolving economy, different reasons attested to this fact,
hence, the study is aimed at investigate the inherent lacuna
of tax governance apparatus in responses to economic
development as broad objective. The study employed field
research design, the research instrument that was deployed
for collection of data is purposive and structured
questionnaire targeted at elicit information from relevant
and related stakeholders in tax matters, the research
instrument and data collected were subjected to Cronbach
alpha test and heteroscedasticity test to affirm the
validity/reliability and best linear unbiased estimator of
data collected respectively. The result revealed that the
responsiveness of economic development to tax assessment,
tax policy and tax administration were statistically
significant inversely related while tax collection was
statistically insignificant related directly with economic
development. Thereby study concluded that poor
management and administration of tax system in Nigeria
responsible for adverse relationship that subsist between
the proportion of tax earnings to GDP and resulted
decayed and declined physical infrastructures and socio-
economic development.
Keywords-- Tax Assessment, Tax Governance,
Economic Development
I. INTRODUCTION
Background of the Study
The usefulness of instrumentality of tax in
economy globally is inexhaustible and cannot be
overemphasized. The dynamism and functions of taxes
has strategically position it as an instrument to revamp
economic recession, depression and as a stabilizer in
boom period. Evolved economies had harnessed and
leveraged on numerous potentials inherent in tax to
advanced and have functional and sound infrastructural
development, the socio-economic and political
improvement that culminated to high standard of living.
These attainments were hinged on the fact that there are
good, functional and sound governances of taxation that
underpinned their tax system that cumulate to these great
accomplishments in the domain of their economies.
Some evolving economies have started also to
leverage on these potentials of tax dynamism and had
started champion new course for growth and
development economically, where failure experienced in
the economies, reasons are linked to dysfunctional in tax
governances or the tax governance had been dormant.
Hence, a dysfunctional tax governance is likening to an
instrument of revenues generator that had engine but the
engine is knocked, yet the sound that emanating from
these revenues generator seems good but the internal
mechanism combustion of the engine is faulty. This is
the picture of governance of tax in evolving economy
like Nigeria economy, hence the study is intended to
examine effectiveness of tax governances in evolving
economy and case studied Nigeria as a template.
Oriakhi, (2002) grouped the functions of tax
into three: financial function, economic function and
social function. Tax is the major sources of revenue to
all governments globally and income redistributions,
these were encapsulated in financials function of tax.
Tax is used as a stabilizer of an economy during inflation
and deflation period and protect the infantry and local
industries, put in a nutshell in economic function of tax.
Moreover, socio-political function of tax is the curtained
of harmful consumption commodities. These functions
could be a mirage, where government machineries or
relevant tax authorities in charge of tax administration
are not conscious of good tax governance that will bring
about enhancement in tax earnings capacity and
functional tax system, where tax payments are not made
easy by every tax-payer in term of convenient, economy,
certainty and the functionality of other canons of
taxation are not upheld.

Evolving economy earned a very low amount of
revenue from taxation because these countries face a
number of institutional problems that is associated with
revenue generation. A cogent problem is lack of sound
and functional tax governance. Again, two central
apparat uses of tax as an income generation are tax
system reforms and governance of tax(Brondolo, Silvani,
Borgne, & Bosch, 2008). The core primacy of this is the
enhancement of tax efficiency governance, specifically
by reducing corruption. but main associated problem of
low revenue generation is political instabilities in
developing countries contributed to dysfunctional of tax
governance.
The system of tax assessment, tax
administration and policy of tax in Nigerian economy
has been approved out towards the socio-economic
objective of the country. Various method of tax
assessment, tax collection, tax administration and tax
policy had to be adopted since tax has be an imposition
levels on individuals and organizations. The primary
objective economic goal in any countries are to increase
the rate of economic growth which in turns to economic
development, hence, the per capital income which will
lead to the advanced living standard.
Therefore, this research intends to reawaken the
consciousness of relevant tax authorities and tax payers
on the contingency to have effective and efficient tax
governance as development tools and examine the effect
of tax governance have so far on the economy. The
functions and roles tax governance be examined in other
to identifies the causes of their ineffective and
inefficiency.
II. STATEMENT OF THE PROBLEM
In any economy, tax assessment, tax collection,
administration of tax and policy of tax are veritable
governances that enhance and support earnings capacity
of tax as a source of revenues to the nation’s economy
and therefore foster the economic growth and
development.
Over the years, revenue derived from taxes has
been tremendously at lower hem of tax earnings capacity
and attended consequence is insignificant growth and
development as the end product that must be
experienced, hence the impact on the poor is not being
felt.
Inadequate tax personnel, fraudulent activities
of tax collectors and poor assessment of tax and
deficiencies in tax administration are associated
problems of collection of tax and tax policies in Nigeria.
Therefore, it is difficult to ascertain what impact or
effect tax assessment, tax collection and tax
administration has to do with emerging economy
considering greater multiplicities in government
management abilities.
Moreover, Nigerian tax laws are complex and
difficult for the ordinary taxpayer to comprehend, and in
some instances are difficult even for knowledgeable of
tax official. In addition, many taxpayers are ignorant of
the existence of certain Nigeria tax laws because the
manner of legislations in the country. These peculiarities
are associated with may be a exhibition of the poor tax
enlightenment and weak fulfillment by Nigerian tax
authorities of their responsibilities with regard to public
consciousness. Ocheoha (2000) emphasizes that tax is a
commodity nobody is stimulated to consume if there are
close substitutions to opt for because tax is an
imposition. Today the purposes of tax governances have
assumed a wider dimension hence the government uses it
as a veritable tool of administration. Therefore, core of
the study is to examine tax governance and economic
development as the broad objective.
III. OBJECTIVES OF THE STUDY
The broad objective is to evaluate the influence
of tax governance in Nigeria Economy while the specific
objectives are:
1. To examine the influence of tax assessment on
economic development
2. To dissect tax collection as a tools on economic
development
3. To investigate tax administration effectiveness
on economic development
4. To find out if tax policyon economic
development.
The research hypotheses in relation to objective of
the research are as follows:
1. H11: Tax assessment governance has a negative
and significant relationship with economy
development
2. H12: Tax collection governance has a direct and
significant impact on Nigerian economy
3. H13: Tax administration governance has an
inverse influence and significant on economic
development
4. H1 4 Tax policy has negative and significant
relationship with economy development.
The sequence of the remain of the study is as
following, section two is on conceptual framework,
section three deals with research methods while section
four relate with data analysis and results and section five
is on summary, conclusion and recommendation.
IV. CONCEPTUAL FRAMEWORK
Concept of Taxation
Tax earnings is a return on social capital or
social goods that are provided by government in order to
sustain these social capitals or social goods. Taxation is
an instrument employed by the government for earning
revenue (Anyaduba, 2004). Tax is a required payment
imposed by the government on the earnings, profit or
wealth of individuals, group of persons, and corporate
establishments.
Therefore, the instrumentality of tax can be
used in achieving both micro and macroeconomic intents
especially in evolving economies such as Nigeria.
However, Musgrave and Musgrave (2004) comment that

the dwindling level of tax revenue generation in the
evolving countries makes it difficult to use tax as an
instrument of fiscal policy for the achievement of
economic growth and subsequently economic
development. Some evolved economies like Canada,
United States, Holland, and United Kingdom have
substantially influenced their cost of living, standard of
living and infrastructural development through earnings
capability from tax generated from various forms of
taxes available in their economies and have thrived
economies through tax revenue (Oluba, 2008). In
evolving counties, such as income from production
sharing, royalties, and corporate income tax on oil and
mining companies yield the substantial percentage of tax
revenue (Pfister, 2009). The tax revenues are sources
where government earnings and basically and most
reliable that is characterized certainty and flexibility
principles. Jhingan (2011) argued that tax is aobligatory
earnings contribution imposed by the relevant tax
authority, regardless of the exact amount of social goods
or social services rendered to the tax payer in return. He
further claimed that tax is aobligatory contribution from
taxable person to the government covers to finance the
expenditures incurred in interest ordinary citizens of all
without reference to special benefits conferred.
Taxation as Revenue Generation and Economic
development
According to plethora of existing library studies
, economic growth entails steady increase in real GDP,
while economic development is the translation of
economic growth that reflect or cause changes in the
improvement in nation economic, political, and social
well-being of its people. We have researchers that had
metered tax earnings and economic growth and affirmed
positive relationship between tax earnings and economic
growth (Ugwunta & Ugwuanyi, 2015) and (Dasalegn,
2014). While the negative relationships is the conclusion
of (Saibu, 2015), (Delessa, 2014), (Keho, 2013), (Marire
& Sunde, 2010). The mixed findings of these studies is a
function of many factors, different sources of data,
material methodologies, in doubt of the discrepancy. The
study intends to use field source of data to elicit first-
hand information from the relevant and related
stakeholders. So that the stakeholders express their
opinion on tax earnings and enrichment, improvement in
the earnings capacity of tax has really impacted or not on
their lives and economy as a whole.
The Concept of Tax Governance
Tax governance entails administrative
effectiveness, administrative efficiency and procedural
fairness that will ensure and engender tax earnings
capacity in an economy (Jang, & Eger III, 2018) these
will help to stimulate economic development.
Governance entails the implementation of good
bureaucratic and administrative policies (namely,
building an effective tax system which can deliver public
goods and service to society),
A number of definitions of good governance
proposed by international organizations exist in
literature. The World Bank (1992) looks at governance
to mean the manner in which authority is exercised in the
managing of a social resources and country’s economic
resources for expansion. Sustainable development can
take place only where existed functional and frameworks
for institution of tax assessment, tax administration tax
collection and tax policy which the study has proxy as
component of tax governance.
Good governance issues focus on:
1. the procedure by which relevant tax authorities
are exercised in the administration and
improvement of a country’s tax revenues and
other social resources;
2. the ability of relevant tax authorities to
formulate design and implement policies and
execute functions on the principles of
economy, effectiveness and efficiency.
However, the relevant of good governance is the
fiscal system, as this plays a key role in state building
and in incapacitating the challenges in the global
economy. Effective tax systems not only establish a
framework for economic growth, but also support the
states’ efforts to build responsible governments.
According to the OECD, (2010) appropriate standards in
taxation can bring about improvement in governance by:
1. development of a shared interest in economic
growth, as governments which depend on taxes
are more eager in implementing incentives for
supporting economic development;
2. developing the State apparatus, as one of the
conditions for effective tax collection is a well-
functioning administration and the process of
improvement of the bureaucratic apparatus
which can affect encouraging changes in the
tax earnings capacity elsewhere;
3. developing accountability and responsiveness,
as relevant tax authority have enticements to
improve governance in order to involve taxable
persons in the politics and – by increased tax
compliance – sustain tax revenues.
In the recent years, there have been brought a shift
in researches concerning taxation issues. The traditional
focus on maximizing tax revenues, compliance and
efficiency has been extended to the function of taxation
in supporting the strategy for state building.
Tax Assessment and Economic Development
Tax assessment is governances that involve in
the calculation or evaluation of tax liability of tax payers.
Put differently, tax assessment is the process of
estimating tax object or tax base of tax payers in order to
arrive tax liability. There are principles that underpin this
tax assessment governance among the listed principles
by the scholarJhingan (2004), Bhartia (2009), Osiegbu,
Onuorah and Nnamdi (2010). The equity principle
states the taxpayer must be assess to tax according to the
proportion of income and the assessment must base on
ability of the taxpayers and finally the tax assessment
must be on fairness and equitable assessment. Bhartia
(2009)Another principle that underpin tax assessment in
the principle of certainty states both taxable persons
and relevant tax authority must be sure amount of the tax

assessment and tax liability must not arbitrary
assessment.
Assessment forms include government
assessment, self-assessment and best of judgement
assessment.Government assessment: is a form of
assessment where relevant tax authorities evaluate tax
payer to tax liability based on annual financial report and
other tax returns submitted or filled to tax authorities.
Self-assessment; is a form of assessment where the tax
payers voluntarily assess and evaluate itself to tax
liability base on taxable income and relevant tax
information at its disposal and filled evident of payment
of assessable tax and other relevant tax document to tax
authorities. Best of judgement. This is a form of tax
assessment where tax authorities assess tax payers into
tax liability base on best knowledge of tax authority due
to the failure on the part of tax payers to fill the
necessary tax returns to relevant tax authorities.
Bases of assessment is the period whereby tax
payer is legally qualifying to be assessed to tax. There
two categories of base of assessments: Actual Year
Bases and Preceding Year Bases
Hence, tax assessment of tax payers is crucial to
the quantities and qualities of revenue that will be
accruable to government cover. Therefore, the
governance of tax assessment has nexus to economy
viability of country especially evolving economy like
Nigerian. Hypothesis developed:
Tax Collection and Economic Development
Tax collection is defined as the gathering of
pecuniary charges or levies obligatory upon an taxable
persons or taxable legal bodies by relevant tax authority
in the local, state and federal government. Is the process
of pooling of a fiscal burden laid upon taxable
individuals or taxable property to support government
expenditure?
Attamah (2004) posits that tax collection is the
assembling of a mandatory revenue contribution forced
upon taxable persons and taxable firms by a public
government to cover government expenses by those
charged with the responsibilities or appointed agents or
tax consultants.
The CITN (2002) defined tax as an compulsory revenue
contribution by a taxable persons and firms to
government covers in pursuant to a defined authorized
legislation expenditures. The World Bank (2016) noted
that tax revenue defines is compulsory transfers of funds
to the central government covers for public utilization.
Tax collection in governance of tax is very crucial in the
sense of its functionality will enhance quantity and
quality of revenue generated through tax. According to
world bank, (2016) affirmed trend of tax revenue ratio to
GDP is range between 1.5% to 5.5% to GDP for past
fifteen years. The figure below shown the trend of
Nigerian tax revenue ratio to GDP between 2003 to 2016
Figure 1: THE PERCENTAGE OF TOTAL REVENUE TO GDP
Source: researcher’s compilation (2018)
Source: Researcher’s Compilation.(2018)

The trend of tax revenue to GDPis as a result
the deficiency in the tax collection process in
comparisons to advanced economy higher percentage of
their tax revenue to their economy domestic product.
https://data.worldbank.org/indicator/GC.TAX.TOTL.GD
.ZS?locations=NG
tax collection must be underpinned with the principles
of conveniences and principle of simplicity. The
process of tax collection must be made ease, accessible
and suitable to taxpayers and tax authorities while the
principle of simplicity states that tax collection should
possess the attribute of straightforwardness and
effortlessness in the task of collection
Tax Collection and challenges
In Nigeria, tax collection is confronted with
complex and thoughtful multidimensional challenges.
According to Ola (2001) revenue collection from income
tax of taxable individual and taxable corporate bodies is
tend to be too low because of insufficient level of
information and enlightenment (tax education), poor
relation between relevant tax authorities and taxable
persons, insufficient number of qualified and competent
accountant among the staff of tax authorities.
Unexperienced and unqualified tax personnel lack skills
on how to reach information or other technical
procedures on how to utilize information available for
the assessment and calculating tax in a best suitable
manner (Ayodeji, Oyeyinka and Efunboade, 2014).
However, Ariyo (1997) advised the followings were
attributed to: dysfunctional in collection arrangement,
multilayeredlaw and apathy of taxable persons because
of absence of utilities enjoyed as exchanged of their tax
collected. The unison opinion of taxable person is that
the wealthy taxable individual does not pay tax liability
in the Nigeria, this has worsened the situation. It is also
viewed as a process of determining the legitimate
position laborious and difficult (Ariyo, 1997; Ola, 2001;
and Odusola, 2003)
These associated challenges revolved around
tax collection process constitute a major hurdle to
quantum and potency of generating capacity of tax
revenues in Nigerian economy.
On the grounds of the above analysis, the
following research hypothesis is developed:
Tax Administration and Economic Development
Sapru (2009), says the word administration
comes from the Latin word administrare which is a
combination of meaning to and ministrare signifying to
minister or serve. Later, the word assumed the meaning
to govern. In another sense, he defined administration as
activities connected with keeping records and
information processing, paperwork and activities
concerned with applying rules, procedures and policies
determined by others. Tax administrations are
governmental bodies that are in charge of practical
interpretation and application of the tax laws
According to Bariyiman and Gladson (2009),
tax administration in the country is being carried out by
the many relevant tax authorities as enacted under the
tax laws. The tax administration also includes
computation of tax liability communication of tax
assessment to taxpayers, processing of objections and
appeal, recovering of tax, accounting for tax collected,
research and statistics. The tax administration including
the following bodies: Federal Board of Inland Revenue
(FBIR),Joint Tax Board (JTB) The State Board of
Internal Revenue (SBIR) and the Local Government
Revenue Committee (LGRC), The Joint State Revenue
Committee (JSRC) and the Body of Appeal
Commissioners together constitute the organs of tax
administration in Nigeria, (Agbetunde 2004). These
administrative bodies are supported and encouraged tax
imposition either to redistribute wealth or to government
project. The tax administration governance, it also has
the tax principles that are fundamental to tax
administration include principle of economy and
principle of productivity. The principle of economy
states that all administrative expenses that are incidental
to total tax revenue collected must be less in value to the
actual total tax revenue collected. While productivity
principle states that tax must be creative to earns
sufficient tax revenue.
Therefore, following the view of the above
stated researchers its obvious that tax administration has
significant impact in economy development once the tax
administration of a country is not effective nor efficient
the purpose which is being set for will forfeited as it for
economy development which stand as the basis of this
research work.
Tax Policy and Economic Development
Tax policy is an instrument of variation in
government’s possession to vary the existing tax rate, tax
base, and other tax governance apparatus that need to be
varied to meet the current economic reality status of any
nation. Tax policy is government proposal on taxes, use
intervene in the activities of tax relating to a particular
fiscal year budget. Tax policy is the aspect of
governance that relate with choice by a government in an
economy to vary tax levies, at what rates, and on what
base. Tax policy two structures microeconomic and
macroeconomic characteristics, (Egbunike,
Emudainohwo, & Gunardi, 2018 ;Musgrave and
Musgrave, 2004).The tax fiscal policy is always
associated with annual budget estimate that deals withthe
use of government tax revenue collection and
expenditure (spending) to influence the economy. But
this tax policy is underpinned by principle of flexibility
which is been reflexed in annual budget proposals. The
principle of flexibility states the tax policy must be given
to constant changes in responses to change that occurred
in economy as a consequence of fluctuations in macro
and micro economic variables. Therefore, tax policy has
a perceived association with economy development.
V. RESEARCH METHODOLOGY
The study adopted research field design because
is based on the expression of opinions and attitude of
stakeholders in tax matters and elicit information
through purposive and structured questionnaire

The data needed to validate the research
objectives and hypotheses of this study are data on tax
assessment, tax collection, tax administration, tax policy
and economic development. The data was obtained from
primary source by the use of purposive and structured
questionnaires which were personally administered. The
population is stakeholders on tax matters in Ondo state.
The study sample size is determined by using Cochran,
W.G. (1953) formula to select 245 sample from
unknown population. Purposive sampling technique was
used to administered the structured questionnaires on
selected respondents from tax officials, tax consultants,
taxpayers, academia.
The explained variable of this study is
economic development. It is widely acknowledged in the
literature that economic development has been metered
several independent variables but it has not been metered
with tax governance to know the perceived relationships.
VI. DATA ANALYSIS
Regression analysis was employed to analyzed
data collected to depict the relationship or the effect of
the decomposed independent variables on the dependent
variable
Regression Analysis
The relationship between economic
development and tax governance apparatus variables
were estimated using OLS. According to Coake et al
(2007), basic assumptions underlying application of OLS
analysis. These assumptions were evaluated because the
violation of these assumptions of Best Least Unbiased
Estimator (BLUE) may affect the integrity of the
regression result. Hence, pre-regression test and post
regression test were carried out on the data used.
Reliability and Validity are vital ideas in
research as they are used for enhancing the accuracy of
the assessment and evaluation of a research work
(Tavakol and Dennick, 2011). According to Twycross
and Shields, (2004) opine that reliability states that the
stability, repeatability and consistency of the contents of
research instrument must be congruent to the results
obtained. Put differently, the results or outcomes of an
investigatorare considered reliable when consistent
outcomes have been attained in indistinguishable
conditions but different circumstances. While Thatcher,
(2010) affirmed that validity of research instruments are
the extent to which any measuring instrument measures
what it is intended to measure.. Therefore, the
inferentiality of this study Cronbach’s alpha was carried
out on the research instrument (Questionnaire).
Average interitem covariance .1979944
Number of items in the scale 5
Scale reliability coefficient 0.8049
The coefficient of Cronbach’s alpha test is
0.8049 which means good result whereas the tolerable
limit 0.6, thestructured questionnaires are reliable and
inference can be drawn from the result for statistical
measurement. It also portrays that when the questions
were re-administered at different intervals, the same
results were gotten every time, hence indicating the
validity of the data.
Heteroscedasticity Test
Heteroscedasticity means the absence of
homoscedasticity, the constant variance assumption of
the Ordinary Least Square estimator. It implies that the
absence of non-constant variance leading to the violation
of the BLUE properties in which the efficiency and
consistency property are lost.
Breusch-Pagan / Cook-Weisberg test for heteroscedasticity
Ho: Constant variance
Variables: fitted values of taxgv
chi2(1) = 17.10
Prob > chi2 = 0.0000
The table above revealed the result obtained
from the test for heteroscedasticity. The probability
value of 0.000 resulting from the test for
heteroscedasticity implies that the model is not free from
the presence of unequal variance. The presence of
heteroscedasticity invalidates the OLS results, therefore,
there is need for robust to correct inconstancy of
variance.
VII. ROBUST REGRESSION
ANALYSIS
Robust regression is a correction for the problem of heteroscedasticity.
VARIABLES OLS ROBUST
CONSTANT 8.852 (0.000) *
TAXASS -.2169 (0.001) * -.2241 (0.001) *
TAXCOL .0749 (0.171) * .0472 (0.406) *

TAXADM -.1477(0.005) * -.1205 (0.027) *
TAXPOL -.1428 (0.021) * -.1517 (0.019) *
R-squared 0.22 0.22
F statistic 16.11 (0.000) * 15.08 (0.0000) *
VIF 1.69
Heteroscedasticity 17.10 (0.000) *
Observations 229 229
Source: Researcher’s Compilation (2018) Note: * is 5% level of significance
In the table above, the result of OLS regression
shown that R-squared value is 0.22, this means 22% of
systemic variations in the opinion of respondents on
economic development as explained variable was jointly
explained by the opinion of respondents on the
explanatory variables which were the tax governance
apparatus. The F-statistic value of 16.11 and its
associated p-value of 0.000 shows the regression model
on the overall is statistically significant at 5% level is
valid, therefore, the inferentiality of the study is reliable.
The meanvalue of o VIFshows is 1.69 which is less than
the benchmark value of 10, this indicates the absence of
multicolinearity among the tax governance apparatus.
Also, it can be observed the OLS result had
heteroscedasticity problem {17.00 (0.000) *}this is
significant and it is corrected by opt out to run robust
regression. In other to validate our stated hypotheses of
explanatory variables, the result of robust regression will
be used.
On the influence of individual explanatory
variables in the model, the table above indicates that Tax
assessment (TAXASS) {OLS robustβ =-0.2241; p
>0.001},tax administration (TAXADM) {β = -0.1206; p
> 0.027} and tax policy (TAXPOL) {β= -0.1518; p >
0.019}as explanatory variables had a negative and
significant influence on explained variables at 5% level
of significant. While only tax collection (TAXCOL) {β=
0 .0472; p <0.40}, has a positive and insignificant
association with opinion of respondent on economic
development. Hence, we accept alternative hypothesis
as stated the study on tax assessment, tax administration
and tax policy while null hypothesis is accepted of tax
collection which has a positive relationship with the
explained but insignificant statistically.
VIII. CONCLUSION
The study has empirically provided evident on
the inherent lacuna of tax governance apparatus in
responses to economic development which the primacy
of the study. Methodologically, purposive and structured
questionnaires were targeted and elicited opinions from
relevant and related stakeholders on tax matters, data
collected were subjected to pre-regression test and post
regression test, but heteroscedasticity test failed ordinary
least square, then robust regression was opted for as
offshore to correct the failed test. The result revealed that
the responsiveness of economic development to tax
assessment, tax administration and tax policy were
statistically significant inversely related while tax
collection was statistically insignificant related directly
with explained variable. Thus, study concluded that poor
management and administration tax governance
apparatus of tax system in Nigerian economy context
responsible for adverse relationship that subsist between
tax earnings capacity and decayed and declined in
physical infrastructures and socio-economic goods for
economic development.
RECOMMENDATIONS
1. Government through relevant tax authorities
should constantly review tax apparatus to in
order to align with current economic reality and
that will always stand the test of time.
2. Possibly, use of expects /consultant to review
operational efficiency of tax authorities at all
levels.
3. Tax administration should be given more
priority through constant training and retraining
of tax officer with good motivation
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